'We have no role to play...': World Bank chief Ajay Banga clears air on India-Pakistan Indus Water Treaty row

Days after India announced the suspension of the Indus Water Treaty (IWT) in a major diplomatic move against Pakistan, World Bank President Ajay Banga clarified the institution’s limited role in the matter, firmly stating that the Bank is not an arbitrator and will not intervene in the dispute between the two countries.

In an interview with CNBC-TV18’s Shereen Bhan, Banga said, “No, the treaty is not suspended. It’s technically called something in abeyance, is how the Indian government worded it.” 

He stressed that the treaty, as originally drafted, does not contain a provision for suspension. “The way it was drawn up, it either needs to be gone or it needs to be replaced by another one. That requires the two countries to want to agree,” he said.

Clarifying the World Bank’s role, Banga added, “The World Bank's role is basically that of a facilitator if they disagree — not by us making a decision — but by us being the party that goes through a process to find a neutral expert or an arbitrator court to settle it.”

He further explained that the Bank’s involvement is largely administrative and financial, including setting up a trust fund at the time of the treaty’s creation to pay the fees of those arbitrators. 

“That's our role. We have no role to play beyond that,” Banga asserted, adding, “I haven't heard from either country yet about anything to do with the Indus Water Treaty.”

Responding to media speculation, Banga said, “It's all bunk because we don't have that role to play… The treaty is a treaty between two sovereign nations and they have to decide whether that's what they want to continue with. It's their decision.”

While acknowledging the treaty has seen “ups and downs” over the past 60 years, Banga reiterated that any change is a sovereign choice. “The World Bank's role is what the World Bank's role is as defined in the treaty — no more and no less.”